Valaris (VAL) AI Stock Analysis

• Market Cap: $3.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.18
• Revenue Growth: 18.78%
• EPS Growth: -72.57%
• Country: US
• Employees: 4,130
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.61
• Shares Outstanding: 71,213,460
• 10 Day Avg. Volume: 1,459,971
• 30 Day Avg. Volume: 1,353,684
• PEG Ratio: -0.15
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -31.99
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 5.71
• Enterprise Value/Ebitda: 4.95
• 1Y Price Target: $51.71
• Price Target Upside: 10.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $51.00 ▲(9.37% Upside)

Valaris's strong financial recovery and operational improvements are the primary drivers of its overall score. The positive sentiment from the earnings call and recent corporate events further supports the company's outlook. While technical indicators are mixed, the valuation remains attractive, leading to a robust overall stock score.

Valaris Business Overview & Revenue Model

Company Description

Valaris Limited (VAL) is a leading offshore drilling service provider in the energy sector, primarily catering to the oil and natural gas industry. The company operates a versatile and technologically advanced fleet of mobile offshore drilling units, including drillships, semi-submersible rigs, and jackup rigs. Valaris serves a global client base, offering a range of drilling solutions designed to meet the challenging demands of offshore exploration and production activities.

How the Company Makes Money

Valaris generates revenue primarily through the leasing of its offshore drilling rigs to oil and gas companies. These contracts can vary in duration and terms, often depending on the complexity of the drilling operation and the specific needs of the client. The company also earns money by providing integrated services that support drilling operations, including drilling management and engineering services. Valaris's earnings are influenced by factors such as global energy demand, oil and gas prices, and technological advancements in drilling practices. Strategic partnerships with major energy corporations and long-term contracts provide stability and predictability to its revenue streams.

Valaris Financial Statement Overview

Summary

Valaris has shown significant improvements across its financial statements, with strong revenue growth, improving margins, and a stable balance sheet. The company has effectively managed its cash flow, turning free cash flow positive, which indicates financial stability and operational efficiency.

Income Statement

Valaris has shown a strong recovery with a significant improvement in its margins and revenue growth trajectory over the recent periods. The Gross Profit Margin has notably increased to 42.58% TTM, and the Net Profit Margin has turned positive at 12.61% TTM from a negative base in the past. Revenue growth is also robust at 5.48% TTM, indicating solid market demand. The EBIT and EBITDA margins have improved to 18.97% and 25.91% TTM respectively, reflecting better operational efficiencies. Overall, the income statement reflects a strong financial turnaround and growing profitability.

Balance Sheet

The balance sheet of Valaris shows a stable financial position with a manageable Debt-to-Equity Ratio of 0.49 TTM, indicating moderate leverage. The Return on Equity has improved significantly to 14.01% TTM, showcasing efficient use of equity capital. The Equity Ratio stands at 50.42% TTM, reflecting a solid equity base relative to total assets. Although the debt level has increased, the company has maintained equity growth, supporting financial stability.

Cash Flow

Valaris has demonstrated improvement in its cash flow management, with a positive Free Cash Flow of $81.54 million TTM, which is a notable turnaround from previous deficits. The Operating Cash Flow to Net Income Ratio is 1.56 TTM, indicating strong cash generation relative to net income. However, the Free Cash Flow Growth Rate is not applicable due to previous negative values, but the positive shift is a favorable sign of improving cash flow health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.46B	2.36B	1.78B	1.60B	1.23B	1.43B
Gross Profit	641.10M	479.60M	139.50M	128.10M	-66.00M	-584.00M
EBITDA	738.80M	577.10M	254.20M	361.40M	-4.18B	-4.26B
Net Income	275.50M	373.40M	865.40M	176.50M	-4.49B	-4.86B
Balance Sheet
Total Assets	4.50B	4.42B	4.32B	2.86B	2.61B	12.87B
Cash, Cash Equivalents and Short-Term Investments	503.40M	368.20M	620.50M	724.10M	608.70M	325.80M
Total Debt	1.17B	1.17B	1.16B	551.80M	545.30M	15.70M
Total Liabilities	2.17B	2.18B	2.33B	1.56B	1.55B	8.50B
Stockholders Equity	2.33B	2.24B	1.99B	1.30B	1.06B	4.37B
Cash Flow
Free Cash Flow	232.50M	-99.70M	-428.60M	-79.50M	-124.90M	-345.50M
Operating Cash Flow	593.50M	355.40M	267.50M	127.50M	-66.00M	-251.70M
Investing Cash Flow	-330.70M	-452.30M	-665.80M	-16.70M	-3.70M	-42.00M
Financing Cash Flow	-156.90M	-158.30M	285.50M	-6.40M	388.70M	522.20M

Valaris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VAL, the sentiment is Neutral. The current price of 46.63 is below the 20-day moving average (MA) of 48.06, above the 50-day MA of 46.28, and above the 200-day MA of 42.83, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 41.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VAL.

Valaris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDW	78 Outperform	$2.76B	14.48	17.91%	―	7.76%	26.49%
WFRD	78 Outperform	$4.06B	8.68	35.14%	1.77%	-5.35%	-4.15%
OII	76 Outperform	$2.24B	11.27	27.08%	―	8.14%	62.72%
VAL	75 Outperform	$3.32B	12.14	12.23%	―	18.78%	-72.57%
NOV	71 Outperform	$4.51B	9.98	7.31%	4.14%	-1.21%	-54.44%
Sector *	65 Neutral	$14.84B	8.64	2.77%	5.45%	4.51%	-62.52%
MRC	64 Neutral	$1.19B	41.18	5.66%	―	-9.81%	-124.43%

Valaris Corporate Events

Valaris Boosts Contract Backlog with New Deals

Valaris Limited announced a significant increase in its contract backlog, rising from approximately $4.2 billion to $4.7 billion since April 30, 2025. This growth is attributed to new contracts and extensions, including a 940-day extension for the drillship VALARIS DS-16 and a new 914-day contract for VALARIS DS-18 with Anadarko Petroleum Corporation. Additionally, Valaris secured a five-well contract offshore West Africa for VALARIS DS-15 and several jackup contract extensions in Qatar and the UK North Sea. The company also plans to sell jackup VALARIS 247 for approximately $108 million, expected to close in the second half of 2025. These developments are poised to enhance Valaris’s operational capacity and market positioning in the offshore drilling sector.

The most recent analyst rating on (VAL) stock is a Sell with a $40.00 price target. To see the full list of analyst forecasts on Valaris stock, see the VAL Stock Forecast page.

Valaris Holds 2025 Annual Shareholder Meeting in Bermuda

Valaris Limited held its 2025 Annual General Meeting of Shareholders in Bermuda on June 12, 2025, with 82.41% of shares present and voting. Key decisions included the election of directors, approval of executive compensation, and the appointment of KPMG LLP as the independent registered public accounting firm, reflecting strong shareholder engagement and support for the company’s governance and financial oversight strategies.

The most recent analyst rating on (VAL) stock is a Sell with a $40.00 price target. To see the full list of analyst forecasts on Valaris stock, see the VAL Stock Forecast page.